It is relatively easy for a firm to enter a perfectly competitive market
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 18-1. Currency speculators believe that the value of the euro will decrease relative to the dollar. Assuming all else remains constant, how would this be represented?
A) Supply would increase, demand would decrease and the economy moves from C to B to A. B) Supply would decrease, demand would decrease and the economy moves from B to C to D. C) Supply would increase, demand would increase and the economy moves from D to A to B. D) Supply would decrease, demand would increase and the economy moves from A to D to C.
If the producer of an information product engages in marginal cost pricing, it earns
A) a normal profit. B) an economic loss. C) zero economic profits. D) positive economic profits.
Suppose there are 7 firms in the candy industry with the market shares shown above. What is the HHI for the industry?
A) 1850 B) 2000 C) 6400 D) 100 E) 20
Suppose the demand curve for a product is horizontal and the supply curve is upward sloping. If a per-unit tax is imposed in the market for this product
A) buyers bear the entire burden of the tax. B) the tax burden will be shared by buyers and sellers. C) the tax burden will be shared among the government, buyers, and sellers. D) sellers bear the entire burden of the tax.